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News Releases

PEMBINA EXITS 2006 WITH RECORD OPERATING RESULTS

    UNAUDITED OPERATING RESULTS
    (Annual 2006 audited financial results will be issued mid-March 2007)

    CALGARY, Feb. 7 /CNW/ -

    -   Pembina achieved record net operating income during 2006 of
        $216.8 million.

    -   During the fourth quarter, Pembina announced a 10 percent increase in
        its 2007 monthly distribution rate, effective January 2007, to
        11 cents per Trust Unit per month, or $1.32 per Trust Unit annually.
        Pembina has increased its distribution rate by a cumulative
        26 percent per Trust Unit since the beginning of 2006. Continued
        strong operating results from Pembina's conventional pipelines and
        growth in the oil sands and midstream business has generated a
        significant and sustainable increase in cash flow that Pembina
        anticipates will support this new level of cash distribution.

    -   Receipts on Pembina's conventional pipelines increased in 2006, for
        the second consecutive year. Incremental receipts from three Pembina
        (Drayton Valley) system Nisku zone batteries and from the reversal of
        the Calven pipeline combined to offset natural production declines.
        Pembina's conventional pipelines transported an average of 457,800
        barrels per day (bpd) during the fourth quarter, a 4 percent increase
        over the 441,200 bpd during the same period in 2005.

    -   Construction on the Cheecham Lateral pipeline was completed during
        the fourth quarter and is expected to begin earning revenue
        February 1, 2007. Construction of the Horizon Pipeline commenced
        during the final quarter of 2006 and is currently scheduled to come
        on-stream in mid-2008. Pembina's Alberta Oil Sands Pipeline (AOSPL)
        system earned revenue based on contracted capacity of 389,000 bpd.

    -   Results generated by the midstream business unit during the quarter
        continued to exceed Pembina's initial expectations for these
        operations. Revenue from this unit generated $12.5 million, up
        20 percent over the same quarter in 2005. Net operating income rose
        25 percent to $11.4 million.

    -   The proposed Kitimat to Summit Lake condensate project is proceeding
        as expected. Pembina is engaged in discussions with its customers,
        affected First Nations and government on development of the project
        and alignment of interests.

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    HIGHLIGHTS
    (unaudited
     results)     3 Months  3 Months           12 Months 12 Months
    ($ millions      Ended     Ended               Ended     Ended
     except where  Dec. 31,  Dec. 31,            Dec. 31,  Dec. 31,
     noted)           2006      2005  % Change      2006      2005  % Change
    -------------------------------------------------------------------------
    Average
     throughput -
     conventional
     (mbpd)          457.8     441.2       3.8     448.5     435.4       3.0
    Contracted
     capacity -
     oil sands
     (mbpd)          389.0     389.0         -     389.0     389.0         -
    Total volumes    846.8     830.2       2.0     837.5     824.4       1.6
    Capital
     expenditures  $  66.7   $  27.0     147.0   $ 168.9   $  79.5     112.5
    Revenue           88.1      77.6      13.4     335.8     290.5      15.6
    Operating
     expenses         32.5      28.5      14.0     119.0     102.7      15.8
    Net operating
     income(1,2)      55.6      49.1      13.0     216.8     187.8      15.5
    Distributed
     cash(1)          37.7      29.7      27.0     142.3     113.5      25.4
      $ Per Trust
       Unit        $0.3000   $0.2625      14.3   $ 1.165   $  1.05      10.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Refer to "Non-GAAP Measures" below.
    (2) Net operating income is defined as revenue less operating expenses
        excluding general and administrative, management fee, depreciation
        and amortization, financing costs and income tax.

    Fund Description

    Pembina Pipeline Income Fund is among the predominant issuers in the
Canadian energy infrastructure trust sector. Pembina's network of conventional
liquids feeder pipelines, and growing presence in the oil sands and midstream
sectors, provide an integral service to the western Canadian energy industry.
This balanced portfolio of high quality, long-life energy infrastructure
assets supports the stability and sustainability of the Fund.
    Pembina Pipeline Income Fund, an unincorporated open-ended trust, pays
monthly cash distributions to Unitholders. Pembina's publicly traded
securities trade on the Toronto Stock Exchange under the symbols: PIF.UN -
Trust Units; PIF.DB.A - 7.50% convertible debentures, and PIF.DB.B - 7.35%
convertible debentures. Pembina's corporate head office is located in Calgary,
Alberta.

    Fund Strategy

    Pembina's principal objective is to provide a stable stream of
distributions to Unitholders that are sustainable over the long-term while
pursuing opportunities for enhancement through accretive growth. Pembina
believes the most prudent manner to achieve this objective is to maintain and
to develop assets around our hydrocarbon-liquids services business within
western Canada. Pembina plans to develop this business through the continuous
improvement and ongoing expansion of its asset base and the acquisition of
quality energy infrastructure assets. To Pembina, "quality" means assets that
are imbued with inherent competitive advantages, which are under long-term
contract with credit-worthy customers, and either service or are in close
proximity to long-life and economic hydrocarbon reserves. This strategy is
intended to generate stable or increasing per-unit cash distributions to
Pembina's Unitholders over the long-term.
    Pembina's business is structured in three key segments: Conventional
Pipelines, Oil Sands Infrastructure and Midstream.
    The primary objective for Pembina's conventional pipeline assets is the
maintenance of operating margin contribution while pursuing opportunities for
throughput and revenue enhancement. Margins are maintained through the use of
toll management, strict adherence to operating cost control and by asset
rationalization. By offering cost-effective, competitively positioned and
reliable transportation services to our customers, Pembina undertakes to
attract new business to its conventional pipeline systems.
    Pembina intends to leverage its uniquely positioned infrastructure and
operating knowledge in the oil sands sector to pursue future opportunities in
this key development area. Pembina's existing oil sands assets, and those
currently under development, offer fully contracted and long-term returns
which provide a secure stream of stable cash flow to the Fund. Further
expansion of Pembina's business interests in this area is a priority.
    The ongoing expansion of Pembina's midstream business is another
priority. Pembina will continue to initiate new terminalling, storage and hub
services over segments of its conventional pipeline systems. Pembina
anticipates that this integration strategy will produce significant benefits
to both pipeline customers and Unitholders, by expanding the range of services
offered, extending the economic life of Pembina's conventional asset base and
by providing substantial revenue enhancement potential.

    Results from Operations

    Conventional Pipelines

    -------------------------------------------------------------------------
                  3 Months  3 Months           12 Months 12 Months
    ($ millions      Ended     Ended               Ended     Ended
     except where  Dec. 31,  Dec. 31,            Dec. 31,  Dec. 31,
     noted)           2006      2005  % Change      2006      2005  % Change
    -------------------------------------------------------------------------
    Throughput
     (mbpd)          457.8     441.2       3.8     448.5     435.4       3.0
    Revenue        $  57.9   $  53.1       9.0   $ 223.0   $ 204.3       9.1
    Operating
     expenses         23.1      21.6       6.8      89.9      80.4      11.8
    Net operating
     income(1)        34.8      31.5      10.5     133.1     123.9       7.4
    Capital
     expenditures     18.2      21.7     (16.1)     54.8      55.5      (1.3)
    Operating
     expenses
     ($/bbl)          0.51      0.50       2.0      0.51      0.47       8.5
    Average revenue
     ($/bbl)          1.29      1.20       7.5      1.27      1.20       5.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Refer to "Non-GAAP Measures" below.

    Pembina's conventional pipeline systems transported an average of
457,800 bpd during the fourth quarter of 2006, a 4 percent increase over the
441,200 bpd transported during the same period of 2005. On a full year basis,
conventional throughputs averaged 448,500 bpd compared to 435,400 bpd for
2005. During the fourth quarter, the Alberta pipeline systems transported
434,200 bpd, an increase of 4 percent over the same period of 2005, and an
average of 425,800 bpd for 2006, a 3 percent increase over 2005. BC gathering
systems volumes for the quarter averaged 31,400 bpd, a slight increase over
the average for the comparable quarter of 2005 of 30,300 bpd. Full year
throughputs for the gathering systems were consistent year over year with an
average of 32,300 bpd transported in 2006. Western volumes for the fourth
quarter were lower at 23,600 bpd compared with 24,100 bpd last year due to
operational issues with a number of third party operated delivery points.
    Several of the conventional systems, mainly Peace, Drayton Valley and
Cremona, continued to face volume restrictions in the fourth quarter, as
delivery constraints into the Edmonton market caused restrictions of NGL and
condensate volumes on all pipelines delivering into the area. The resulting
lower volumes were partially offset with volumes from the Calven pipeline and
additional volumes redirected from a third party pipeline. The three Nisku
zone production batteries connected to the Drayton Valley system continued to
experience a slow recovery of volumes due to ongoing operational issues early
in the fourth quarter. By December 2006, the Drayton Valley system saw volumes
improve slightly from all three of the facilities which helped contribute to
the year over year increase of receipts on the conventional systems.
    Revenue generated by the conventional systems during the quarter totaled
$57.9 million and $223.0 million for 2006, up 9 percent when compared to the
same periods in 2005. Revenue contributed by the Alberta systems during 2006
of $195.2 million was 9 percent higher than 2005. Average revenue per barrel
on the Alberta systems during the fourth quarter and for the full year was
$1.26 per barrel, up 6 cents per barrel compared to the averages for the same
periods of 2005. A year-over-year increase in the revenue per barrel on the
Alberta systems was partially attributable to toll adjustments implemented on
a number of systems at the end of 2005 and during 2006.

    Oil Sands Infrastructure

    -------------------------------------------------------------------------
                  3 Months  3 Months           12 Months 12 Months
    ($ millions      Ended     Ended               Ended     Ended
     except where  Dec. 31,  Dec. 31,            Dec. 31,  Dec. 31,
     noted)           2006      2005  % Change      2006      2005  % Change
    -------------------------------------------------------------------------
    Average
     throughput
     (mbpd)(1)       308.6     230.7      33.8     263.5    218.70      20.5
    Revenue        $  17.6   $  15.3      15.5   $  62.1   $  55.5      12.0
    Operating
     expenses          8.3       5.6      48.0      24.8      18.5      34.1
    Net operating
     income(2)         9.3       9.7      (4.1)     37.3      37.0       0.9
    Capital
     expenditures     52.4       2.7   1,840.7     101.8       6.9   1,375.4
    Operating
     expenses
     ($/bbl)          0.29      0.27       7.4      0.26      0.23      13.0
    Average revenue
     ($/bbl)          0.62      0.72     (13.9)     0.65      0.69      (5.8)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Actual throughput. Contracted capacity was 389,000 bpd in all
        periods.
    (2) Refer to "Non-GAAP Measures" below.

    Pembina's AOSPL system continued to experience record levels of
throughput from the Syncrude facility due to increased production from the
UE-1 expansion. Average throughput on this fully contracted system increased
to 308,600 bpd during the fourth quarter of 2006, an increase of 34 percent
year-over-year. AOSPL contributed revenue of $17.6 million during the quarter,
a 15 percent increase over the fourth quarter of 2005. Full year revenue for
AOSPL in 2006 of $62.1 million was 12 percent higher than the revenue recorded
in 2005, reflecting higher flow-through operating expenses in 2006. AOSPL
revenue is contracted to recover operating costs and earn a return on invested
capital, and is therefore not impacted by actual pipeline throughputs.
    Pembina's oil sands infrastructure business unit completed another strong
quarter and a very active 2006, with the substantial completion of the
Cheecham Lateral pipeline and commencement of construction activities on the
Horizon Pipeline. The Cheecham Lateral pipeline was available for service in
the fourth quarter and began generating revenue on February 1, 2007. The
capacity of this new service of 136,000 bpd of synthetic crude oil, which is
delivered from Pembina's existing AOSPL system, is fully contracted to its
shippers. In November 2006, Pembina announced the execution of definitive
agreements with Canadian Natural Resources Limited (CNRL) for the Horizon
Pipeline. Under the agreements, the Horizon Pipeline, with a carrying capacity
of 250,000 bpd will provide fully-contracted, exclusive transportation from
CNRL's Horizon Oil Sands project, located 70 kilometers north of Fort McMurray
to Edmonton, Alberta. The first phase of construction on the Horizon Pipeline
commenced during the fourth quarter of 2006; the second and final phases will
occur over the summer of 2007 and winter of 2007 and 2008. Pembina estimates
that the total cost of the Horizon Pipeline will be $350 million and Pembina
expects it to be available for service mid-2008.

    Midstream Business

    -------------------------------------------------------------------------
                  3 Months  3 Months           12 Months 12 Months
    ($ millions      Ended     Ended               Ended     Ended
     except where  Dec. 31,  Dec. 31,            Dec. 31,  Dec. 31,
     noted)           2006      2005  % Change      2006      2005  % Change
    -------------------------------------------------------------------------
    Revenue(1)     $  12.5   $  10.4      20.2   $  50.7   $  30.7      65.2
    Operating
     expenses          1.1       1.3     (15.4)      4.3       3.8      12.7
    Net operating
     income(2)        11.4       9.1      25.3      46.4      26.9      72.5
    Capital
     expenditures(3)  (3.9)      3.3    (218.2)     12.3      17.1     (28.1)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Net of $1.6 million in product purchase expense for the fourth
        quarter 2006 and $5.1 million for year ended December 31, 2006.
    (2) Refer to "Non-GAAP Measures" below.
    (3) Reallocation of development costs related to the Condensate Project
        to Oil Sands Infrastructure.

    Pembina's midstream business unit consists of its 50 percent interest in
the Fort Saskatchewan Ethylene Storage Facility together with its wholly-owned
terminalling, storage and hub services.
    Pembina's 50 percent interest in the Fort Saskatchewan Ethylene Storage
Facility generates fixed contracted returns over the term of the agreement
that extends through June 2023. Along with stable, long-term cash flow, this
asset provides diversification of Pembina's business into the petrochemical
sector without commodity price exposure.
    Development of Pembina's terminalling, storage and hub services continued
during the fourth quarter of 2006. The increased focus on the midstream
business unit has resulted in material increases in both revenue and net
operating income quarter-over-quarter and year-over-year. The midstream
business unit generated revenue of $12.5 million during the quarter and
$50.7 million for 2006, compared with $10.4 million and $30.7 million for the
same periods in 2005. Net operating income for the quarter rose 25 percent
from $9.1 million in 2005 to $11.4 million in 2006, and rose 72 percent on a
year-to-date basis from $26.9 million generated during 2005 to $46.4 million
for the same period of 2006. The large increases are attributable to higher
than expected returns on the Swan Hills joint venture, combined with the
start-up of midstream services on the Drayton Valley system. Pembina
anticipates returns from midstream services on the Drayton Valley system to
reach full potential over the coming year. Several smaller projects are
currently in various stages of development and Pembina expects these
undertakings to further boost the operating income contribution of the
midstream business unit in future periods.

    Consolidated Operating Expenses

    Operating expenses during the fourth quarter totaled $32.5 million and
$119.0 million for the full year 2006, up from the operating expenses incurred
during the comparable periods of 2005 of $28.5 million and $102.7 million,
respectively. The conventional pipeline systems incurred operating expenses of
$23.1 million for the fourth quarter and $89.9 million through 2006, up
slightly from $21.6 million and $80.4 million for the same periods in 2005. On
a per barrel of throughput basis, operating expenses on the conventional
systems averaged 51 cents for the fourth quarter of 2006, which was higher
than the fourth quarter of 2005 level of 50 cents. For 2006, per unit
operating expenses on the conventional systems of 51 cents compared to
47 cents during the same period of the prior year. Higher operating expenses
were partly due to increased maintenance spending and the unhedged portion of
Pembina's power requirements.

    Cash Distributions

    The Fund pays cash distributions on a monthly basis to Unitholders of
record on the last calendar day of each month. Distributions are payable on
the 15th day of the month following the record date. In late 2005, Pembina
announced a 9 percent increase in its distribution objective, to an annual
rate of $1.14 per Trust Unit commencing in January 2006. During 2006, Pembina
announced two additional increases to the distribution rate. A 5.3 percent
increase was announced in July 2006 and a further 10 percent increase, to
11 cents per Trust Unit per month, or $1.32 per Trust Unit on an annualized
basis, effective for the January 2007 distribution, was announced in November,
2006.
    Under Canadian tax laws, a component of the Fund's cash distributions are
taxable in the hands of the Unitholder, with the remaining portion a return of
capital, unless held in a tax-deferred account. Pembina estimates that
75 percent of the distributions declared in 2006 will be taxable and 25
percent will be a return of capital for Canadian tax purposes. For purposes of
calculating the capital gains upon disposition of the Trust Units, the amount
considered a return of capital will reduce the Unitholders' adjusted cost base
of each Trust Unit for Canadian tax purposes. Pembina's distributions are
subject to current domestic tax laws which require a withholding tax from
distribution income to non-residents of Canada.

    Trust Unit and Convertible Debenture Information

    The Fund's Premium Distribution, Distribution Reinvestment and Optional
Cash Purchase Plan (DRIP) raised $21.5 million during the fourth quarter of
2006 through the issuance of 1,424,161 Trust Units, compared with $9.4 million
in the fourth quarter of 2005 through the issuance of 653,222 Trust Units.
2006 DRIP proceeds totaled $76.6 million through the issuance of 4,911,398
Trust Units, up from the prior year when $31.3 million was raised under the
plan through the issuance of 2,286,319 Trust Units. The plan continues to
attract significant Unitholder interest. Pembina's targeted plan proceeds for
2007 of $100 million is aligned with Pembina's expanded capital program. DRIP
plan proceeds are directed towards debt repayment and funding development
capital expenditures.

    The Fund's Trust Units, together with both of the two remaining series of
convertible debentures, are traded on the Toronto Stock Exchange.

    -------------------------------------------------------------------------
                                     Jan. 31,        Dec. 31,        Dec. 31,
                                        2007(1)         2006            2005
    -------------------------------------------------------------------------

    Trust Units Outstanding      126,868,949     126,217,888     113,897,002
    Average Daily Volume
     (Units per day)                 291,579         257,893         227,362
    Unit Trading Price
     ($/Unit)(3)                $      16.08    $      15.83    $      15.95

    Principal Amount of
     Debentures Outstanding
     ($millions)                $       78.7(4) $       80.0    $      164.8

    8.25% Convertible Debentures
     Trading Price              $        nil    $        nil    $     172.21
    7.50% Convertible Debentures
     Trading Price(2)           $     153.20    $     149.74    $     151.50
    7.35% Convertible Debentures
     Trading Price(3)           $     128.49    $     124.64    $     127.35

    Total Market Value of
     Securities Outstanding
     ($millions)                $    2,144.8    $    2,101.7    $    2,036.0
    -------------------------------------------------------------------------
    Pembina's convertible debentures are convertible to Trust Units at
    conversion prices of ($/Unit):
      7.50% Convertible Debentures maturing
       June 30, 2007                            $      10.50
      7.35% Convertible Debentures maturing
       December 31, 2010                        $      12.50
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Based on the 22 trading days from January 1 to January 31, 2007,
        inclusive.
    (2) $15.6 million principal amount of 7.50% convertible debentures
        outstanding at December 31, 2006.
    (3) $64.4 million principal amount of 7.35% convertible debentures
        outstanding at December 31, 2006.
    (4) Full conversion to Trust Units of the remaining principal amount of
        the two remaining debenture issues as at January 31, 2007 would
        result in the issuance of 6.5 million Trust Units.

    As at December 31, 2006, non-resident holdings in the Fund remained
consistent with the prior quarter in the 30 percent range. This level is
within the 49 percent restriction on non-resident ownership in the Fund
imposed by Pembina's Declaration of Trust and is consistent with guidelines
under the Income Tax Act (Canada).

    New Developments and Outlook

    Pembina exited 2006 with strong operating results. Growth in all three
business units enabled Pembina to announce yet another increase in its monthly
distribution rate during the final quarter of the year to 11 cents per Trust
Unit or $1.32 annualized. This 10 percent increase, which will take effect
January 2007, was the third distribution increase announced by Pembina in a
twelve month period representing a 26 percent cumulative increase over the
2005 per Unit distribution rate of $1.05. Pembina is pursuing numerous
risk-managed conventional pipeline, oil sands infrastructure and midstream
opportunities, consistent with its growth oriented vertical integration
strategy.
    Conventional throughputs remained strong through year-end despite
delivery restrictions into the Edmonton market. Pembina anticipates the
upcoming segregation of low sulfur and high sulfur crude oil streams on the
Drayton Valley system to assist in the reduction of these restrictions, once
on-stream. Contributions from the Calven pipeline connection and diverted
third party volumes helped offset these constraints as did the slight increase
in volumes from the connected Nisku batteries in December. Based on customer
guidance, Pembina expects Nisku production volumes to increase into 2007 as
remaining operational issues are resolved. Two new significant connections are
also expected to come on-stream in 2007. Pembina continues to work with
customers in attracting new NGL volumes to be transported on the southern leg
of the Peace system. 2006 exit volumes on the conventional pipelines continued
on an upward trend with a 5 percent increase over exit volumes of 2005.
Pembina anticipates that this trend will continue into 2007 with incremental
pipeline receipts continuing to offset the natural declines on these systems.
    Construction of the Cheecham Lateral pipeline was completed late in the
fourth quarter and began earning revenue on February 1, 2007. Definitive
agreements with CNRL for the Horizon Pipeline were executed in November 2006.
Clearing, grading and access activities for the pipeline have been completed
and construction is proceeding as planned. The Horizon Pipeline is currently
scheduled to be placed in service mid-2008. Pembina has also commenced
discussions with several other producers in the oil sands area for projects
with expected startup dates in the 2010-2012 timeframe. Such discussions are
still in preliminary stages and no assurances can be given to the scope or
implementation of these projects.
    Pembina continues to develop its midstream business as knowledge and
expertise is gained in this area. Midstream services are now fully operational
on the Swan Hills, Cremona and Drayton Valley systems. The trend toward
vertically integrating services is expected to continue into 2007, with
Pembina reviewing various opportunities on its existing pipelines with the
potential to expand its services. Pembina expects its midstream business to be
a significant revenue generator for Pembina and anticipates increasing returns
for 2007.
    The proposed $1.2 billion condensate project continues to progress as
expected. This project involves the possible acquisition of a marine terminal
in Kitimat, British Columbia and the construction and operation of
approximately 465 kilometers of pipeline and related facilities for delivery
to Pembina's Western system. Once on the Western system, the condensate can
access Pembina's existing network of pipelines in BC and Alberta which will be
expanded to accommodate the incremental throughput. The proposed pipeline,
which will be capable of transporting 100,000 bpd, is intended to deliver
condensate to be used by customers as diluent in the transportation of heavy
oil. During the fourth quarter, Pembina provided shippers with updated project
cost estimates, conducted open houses throughout Alberta and Northeastern
British Columbia to inform and obtain feedback from local residents on the
project, made progress in our discussions with a number of First Nations
groups and continued to review the project with government and regulatory
agencies. Should this project receive the necessary approvals, Pembina
anticipates a start up date in 2010.
    A producer-owner miscible carbon dioxide (CO2) flooding pilot project is
currently underway in the service area of the Drayton Valley system. Pembina
has initiated early stage discussions with regional producers to investigate
the potential associated with this enhanced oil recovery method. Pembina is
favorably positioned to provide this service due to its extensive network of
rights-of-way and potential construction synergy with other projects.
Pembina's Swan Hills, Redwater and Drayton Valley service areas have all been
identified as amenable to the application of this technology.
    Pembina exited 2006 with strong operating results and numerous
opportunities for growth and expansion. Although the recent Federal Tax
pronouncement on the future potential taxation of income trusts is unfavorable
to Pembina Unitholders, Pembina expects that its existing underlying high
quality assets will continue to perform. Our business strategy of growth
through vertically integrating our service offerings remains robust and
unchanged. Management is committed to long term planning and is investigating
various initiatives to ensure that they continue to deliver maximum value to
all Pembina stakeholders.
    During the fourth quarter of 2006, Pembina marked its ninth year as a
publicly traded income fund. Over that period, Pembina has emerged as a
leading integrated transportation and midstream service provider in western
Canada with a reputation for reliable operations, prudent management and sound
corporate governance. Since our initial public offering in October 1997,
Pembina has distributed a total of $830 million, or $9.42 per Trust Unit, on a
$10 per unit original issue price. The various expansion initiatives currently
under investigation, combined with our balanced portfolio and ability to
leverage our existing asset base lends credence to our ability to grow and
prosper in the future.

    Additional Information

    Additional information relating to Pembina Pipeline Income Fund,
including the Fund's 2005 Annual Information Form and financial statements,
can be found on the Fund's profile on the SEDAR website at www.sedar.com or at
www.pembina.com.

    Non-GAAP Measures

    Throughout this press release the Fund and Pembina use the term
"distributed cash" to refer to the amount of cash that has been or is to be
available for distribution to the Fund's Unitholders. "Distributed cash is not
a measure recognized by Canadian generally accepted accounting principles
(GAAP). Therefore, distributed cash of the Fund may not be comparable to
similar measures presented by other issuers, and investors are cautioned that
distributed cash should not be construed as an alternative to net earnings,
cash from operating activities or other measures of financial performance
calculated in accordance with GAAP as an indicator of the Fund's performance.
    Further, "net operating income" is not recognized under Canadian GAAP.
Management believes that in addition to earnings, net operating income is a
useful measure. Investors should be cautioned, however, net operating income
should not be construed as an alternative to net earnings, cash flows from
operating activities or other measures of financial performance determined in
accordance with GAAP as an indicator of the Fund's performance. Furthermore,
these measures may not be comparable to similar measures presented by other
issuers.

    Forward-Looking Information and Statements

    The information contained in this press release contains certain
forward-looking statements and information that are based on the Fund's
current expectations, estimates, projections and assumptions in light of its
experience and its perception of historical trends. In some cases,
forward-looking statements and information can be identified by terminology
such as "may", "will", "should", "expects", "projects", "plans",
"anticipates", "targets", "believes", "estimates", "continue", "designed",
"objective", "maintain", "schedule" and similar expressions. In particular,
this press release contains forward-looking statements with respect to: future
stability and sustainability of cash distributions to Unitholders; ongoing
expansions of and additions to our asset base; future growth and growth
potential in Pembina's conventional pipelines, oil sands infrastructure and
midstream operations; potential revenue enhancement; continued high levels of
oil and gas activity and increased oil and gas production in proximity to our
pipelines and other assets; additional throughput potential on additional
connections; expected project start-up and construction dates; future
distributions, payout ratios and taxation of distributions; the future
development of the condensate projects and CO2 flooding, and the expansion of
midstream services. These statements are not guarantees of future performance
and are subject to a number of known and unknown risks and uncertainties,
including but not limited to, the impact of competitive entities and pricing,
reliance on key alliances and agreements, the strength and operations of the
oil and natural gas production industry and related commodity prices,
regulatory environment, tax laws and treatment, fluctuations in operating
results, the ability of Pembina to raise sufficient capital to complete future
projects and satisfy future commitments, construction delays and labour and
material shortages, and certain other risks detailed from time to time in the
Fund's public disclosure documents. The Fund believes the expectations
reflected in these forward-looking statements and information are reasonable
as of the date hereof but no assurance can be given that these expectations
will prove to be correct. Undue reliance should not be placed on these
forward-looking statements and information as both known and unknown risks and
uncertainties, including those business risks stated above, may cause actual
performance and financial results in future periods to differ materially from
any projections of future performance or results expressed or implied by such
forward-looking statements and information. Accordingly, readers are cautioned
that events or circumstances could cause results to differ materially from
those predicted. Such forward-looking statements and information are expressly
qualified by the above statements. The Fund does not undertake any obligation
to publicly update or revise any forward-looking statements or information
contained herein, except as required by applicable laws.

    Quarterly Results Webcast

    A live internet broadcast of Pembina's discussion of 2006 unaudited
operating results conference call is scheduled for February 7, 2007 at
2:00 p.m. Calgary (4:00 p.m. Eastern, 1:00 p.m. Pacific). Those wishing to
access the webcast are invited to visit Pembina's website located at
www.pembina.com, or the host site at www.newswire.ca/webcast. An archive of
the call will be available on-line for 90 days following the broadcast date.

    %SEDAR: 00008906E

For further information: Glenys Hermanutz, Vice President, Corporate
Affairs, Pembina Pipeline Corporation, (403) 231-7500, 1-888-428-3222, e-mail:
investor-relations@pembina.com